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Market Review

US:

U.S. stocks closed modestly lower on Wednesday after investors digested hotter-than-expected U.S. inflation data, which fueled fears that the Federal Reserve could raise key interest rates by as much as 100 basis points later this month.

Asia:

Shares in Asia-Pacific were mixed on Thursday after a hotter-than-expected inflation report in the U.S. Singapore’s GDP missed expectations and the country’s central bank tightened monetary policy

India:

Benchmark equity indices Sensex and Nifty reversed their early gains to close lower on Wednesday due to selling in oil & gas, banking and IT stocks amid weak trends in European markets. Market is expected to open on a flattish note and likely to witness volatile move during the day.

Global Economy:

Britain's economy grew unexpectedly in May, driven by a rise in doctor appointments but also broader demand for things such as holidays, according to data that could reassure the Bank of England about its plans to keep on raising interest rates. Economic output expanded by 0.5% in May although consumer services fell as the surge in inflation hit shoppers.

U.S. annual consumer prices jumped 9.1% in June, the largest increase in more than four decades, leaving Americans to dig deeper to pay for gasoline, food, healthcare and rents, and the Federal Reserve most certain to hike interest rates by another 75 basis points at the end of the month. The bigger-thanexpected rise in the year-on-year consumer price index reported by the Labor Department on Wednesday also reflected higher prices for a range of other goods and services, including motor vehicles, apparel and household furniture. The CPI increased by the most in nearly 17 years on a monthly basis.

Commodities:

Oil prices ticked down on Thursday as investors doubled down on the possibility of a rate hike by the U.S. Federal Reserve that would stem inflation and curb oil demand. Gold prices slipped on Thursday, as Treasury yields and the dollar rose, with bullion's outlook hurt by fears the Federal Reserve could go for a more aggressive interest rate hike this month, after data showed U.S. inflation sky-rocketed in June.

Currency:

The dollar retraced from a 20-year high and the euro broke back above parity, following a brief dip below, after data showed U.S. consumer price inflation surged to a more than 40- year high in June.

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